Here’s our recommendation for posting non-sufficient funds (NSF) or bounced checks on an invoice.
Add a note including a date to the original check payment such as “NSF 06/02/2015” so you know when you were notified by the bank of the NSF.
Create two manual fees. To do so, you’ll need to change the invoice status from PAID to UNPAID
- The first manual fee is used to cover a NSF service fee.
- The second manual fee is used to record a NSF adjustment which causes the invoice to show a Balance Due and allow you to accept a new payment.
G/L Code Users: When you run a financial report, you want to retain the original check receipt and the new one. So the NSF adjustment should go to a G/L code that is not considered new revenue. We recommend creating a G/L code called “NSF” or “Bounced checks”, to avoid booking new revenue when processing an NSF check.
We maintain to abide by QuickBooks and other programs in regards to how they request the recording of NSF Checks. Within ASAP, we follow with the concept of recording it as a Journal Entry:
